Ivory Coast Considers Cocoa Price Reduction Amid Global Market Crisis
The government of Ivory Coast is reportedly considering a reduction in the price it pays cocoa farmers, potentially following a similar move by neighboring Ghana, as the world’s leading cocoa-producing nations confront a major crisis in the global chocolate supply industry.
According to senior government sources who spoke to Reuters, authorities in Abidjan are currently reviewing all available options, including aligning with Ghana’s recent decision to cut its farmgate cocoa price by 28.6% for the remainder of the 2025/2026 main crop season. The move comes in response to a sharp and sustained decline in global cocoa prices.
The farmgate price, the fixed amount paid directly to farmers for their cocoa beans after harvest, before involvement from exporters, traders, processors, or cooperatives, plays a crucial role in sustaining the livelihoods of millions of farmers. Any reduction in this price could have far-reaching economic consequences for rural communities heavily dependent on cocoa production.
Growing Pressure on the Cocoa Sector
The discussions between the two West African nations, as well as internal deliberations within Ivory Coast’s government, had not previously been made public. Both countries collectively produce approximately 60% of the world’s cocoa supply and have been closely coordinating responses to the ongoing sector crisis through the Ivory Coast–Ghana Cocoa Initiative (ICCIG).
A senior Ivorian official revealed that authorities are moving toward decisive action.
“All options have been placed on the table, and discussions are progressing well. Courageous and realistic decisions will be taken soon,” the official stated, noting the urgency of the situation.
The government’s limited flexibility stems largely from the dramatic fall in global cocoa prices, which have declined by nearly 50% in recent months. Cocoa futures on the Intercontinental Exchange (ICE) recently dropped to their lowest level in two and a half years, largely due to concerns over unsold cocoa stocks in both Ivory Coast and Ghana.
Officials emphasize that protecting the long-term sustainability of the cocoa industry remains a top priority.
“We must think about the survival of the cocoa sector in Ivory Coast. We need to act; changes are underway,” another government source explained.
An inter-ministerial committee has already met to review the situation, and a final policy decision is expected in the near future. However, government representatives have yet to publicly comment on the matter.
Read also Ghana Risks Losing Position as World’s Second-Largest Cocoa Producer Amid Rising Global Competition
Coordinated Measures to Protect Farmers
Industry leaders say the two countries are adapting to sudden market changes while working to prevent long-term structural damage to the sector. The trading departments of Ivory Coast’s Coffee and Cocoa Council and Ghana’s Ghana Cocoa Board (COCOBOD) continue to maintain close communication.
Officials have also reaffirmed the importance of the Living Income Differential policy introduced in 2019, which was designed to improve farmers’ earnings. According to ICCIG leadership, the current market volatility highlights the policy’s continued relevance.
The initiative is preparing a joint meeting between both nations to strengthen policy coordination, review market trends, and propose improved mechanisms for stabilizing cocoa prices while easing financial pressure on farmers.
Industry Expects Imminent Decision
Exporters and international buyers increasingly believe that a price cut announcement from Ivory Coast is inevitable, suggesting that the real question is no longer whether a reduction will occur but when.
Industry observers note that although Ivory Coast has shown resistance, economic pressures and market realities may ultimately compel the country to adopt measures similar to Ghana’s.
As global demand fluctuates and prices continue to fall, the decisions taken by these two cocoa giant could significantly shape the future of the international chocolate industry and the livelihoods of millions of farmers across West Africa.
